Mechanism Capital Lianchuang: The entry of new funds in the bull market will not consider price or funding rate

According to BlockBeats news, on March 7, Mechanism Capital co-founder Andrew Kang posted on social media that some trading methods are suitable for PvP market conditions, but not for PvE market conditions. First of all, in a bull market, it is not advisable to pay too much attention to high funding rates or prices that only rise but never fall. Funding rates may continue to rise, and short positions may not be sustainable. Secondly, it should be noted that the rotation of funds is also different from the past. New entrants will not diversify their investments like older cryptocurrency traders. They will pick their favorite meme coins and continue to spend their wages on buying them every day/week. Traders who short Meme coins because of the Meme coin rotation will eventually be eliminated from the market. BlockBeats previously reported that 10X Research CEO Markus Thielen has also expressed his suspicion that many new fund inflows from retail investors and institutions are based on fixed dollar amounts, that is, investors may not be sensitive to currency prices.